Hawaiʻi Homeowners Face Insurance Coverage Challenges Due to Aging Roofs and Coastal Risks

Insurance providers in Hawaiʻi are increasingly refusing coverage for homes with aging roofs or those located near the coast due to heightened disaster risks. Notably, State Farm has ceased insuring single-wall homes and now excludes properties within 1,000 feet of the ocean, reflecting a broader trend of carriers withdrawing from high-risk regions. This retreat corresponds with a 23.2% hike in insurance premiums across Hawaiʻi between 2019 and 2024, underscoring growing financial pressures on homeowners.

Insurance companies are applying strict, sometimes rigid geographic standards without accounting for natural protective features like hills, leading to widespread policy restrictions. These measures aim to manage hurricane exposure but complicate the housing market by limiting coverage availability, which is essential for securing mortgages. The unavailability of insurance coverage risks depressing property values and destabilizing communities.

Environmental factors such as sea-level rise and storm intensity, driven by broader climatic changes, have escalated risks for coastal properties, accelerating deterioration from ocean spray and increasing repair costs. Older structures are particularly vulnerable, contributing to challenges in obtaining affordable insurance and maintenance features. As a result, homeowners are advised to proactively maintain roofs, document repairs, and implement fire-resistant measures.

Stakeholders can engage with local legislators to advocate for stronger construction regulations and government-backed insurance solutions, such as Hawaiʻi's Hurricane Relief Fund, which has recently expanded to include condominium groups and may further encompass regular homes. Similar FAIR (Fair Access to Insurance Requirements) programs across the country provide a model for basic protection in markets abandoned by private insurers.

Homebuyers in high-risk zones are encouraged to verify insurance availability before purchasing and to review sellers’ coverage history and estimates as a precaution. These strategies reflect the evolving intersection of climate risks, regulatory responses, and insurance market dynamics, highlighting the importance of adaptive risk management and policy innovation in disaster-prone areas.